Pension funds explore investment opportunity of 'alternative' proteins
The $158.7bn Border to Coast Pension Partnership has released a series of investment insights which explores the prospect of a world more restricted by climate constraints which shifts away from large mammal livestock such as beef and lamb, to more diverse range of proteins sources, including “insect-derived ingredients”
What's on the menu of the future? Larvae lasagne, according to several pension funds.
Some funds have been scoping out the “alternative protein” market for potential investment opportunities.
The $158.7bn Border to Coast Pension Partnership has released a series of investment insights which “identifies the forces that will reshape life”, one of these themes was “a shift away from traditional livestock towards alternative proteins”.
The logic is quite simple: as we get to a world where we are more restricted by climate constraints, we may shift away from large mammal livestock such as beef and lamb, to more diverse range of proteins sources such as plant-based alternatives, cultured meat, precision-fermented products and, you guessed it, “insect-derived ingredients”.
When we asked Border to Coast if they believed we would be eating insects in the future a spokesperson ominously responded “we already are and the research suggests that we will even more so in the future”.
The good news for Border to Coast, if you can call it that, is that they are not alone. In the Netherlands they are aiming to execute these plans by putting in place a goal of having a 50/50 animal to plant consumption ratio by 2030.
As a result Lars Dijkstra chief investment officer at the $287bn PGGM, whose primary client is the $285.5bn Pensioenfonds Zorg en Welzijn, said it is looking at private market opportunities focused on “new” protein sources.
Dijkstra said that venture capital investments in the space are essential for innovation.
“We selectively invest in companies that are leaders — or aspire to become leaders”, he said pointing to large food conglomerates Danone and Unilever that can "significantly influence consumer behaviour” through their product range and marketing.
I think I will have that to go please waiter.